US stock markets ended mixed Monday, dragged by another rise in oil prices and a sharp selloff in technology stocks, as investors brushed aside Federal Reserve Chair Jerome Powell’s remarks on inflation.

The Dow Jones Industrial Average rose 0.11%, or 49.5 points, to close at 45,216.14.

On the other hand, the Nasdaq fell 0.73%, or 153.72 points, to 20,794.64, while the S&P 500 dropped 0.39%, or 25.13 points, to 6,343.72.

The Volatility Index (VIX), also known as the "fear index," declined 1.42% to 30.61 points.

Investor sentiment drew some support from US President Donald Trump, who suggested on Monday that a possible end to the war with Iran may be approaching. In a Truth Social post, Trump said the US is “in serious discussions with A NEW, AND MORE REASONABLE, REGIME to end our Military Operations in Iran,” adding that “great progress has been made.”

At the same time, Trump warned that if a peace agreement is not reached “shortly” and the Strait of Hormuz is not “immediately” reopened, the US would escalate its military response, threatening strikes on Iran’s power plants, oil wells, Kharg Island and “possibly all desalinization plants.”

US Treasury Secretary Scott Bessent, in an interview with Fox News, said Washington would eventually regain control of the Strait of Hormuz and ensure freedom of navigation either through US escorts or a multinational escort force.

Conflicting signals from Washington and Tehran, along with the involvement of Iran-backed Houthis in Yemen, kept investors cautious.

Oil prices remained high on Monday, with Brent crude futures rising 1.7% to $114.51 a barrel, being on track for their largest-ever monthly gain, and rising 55% over the period.

US oil prices also advanced at the start of the week, with West Texas Intermediate (WTI) futures climbing 5.4% to hit $105 a barrel.

Meanwhile, Federal Reserve Chair Jerome Powell said Monday that, despite rising energy prices, longer-term inflation expectations remain “well anchored.”

While acknowledging the Fed could “eventually maybe face the question” of how to respond, he said policymakers are “not really facing it yet” because the broader economic effects remain unclear.

US Treasury yields declined after the remarks, with the benchmark 10-year yield falling more than 2% to 4.35%.

- European stock markets

European stock markets closed higher on Monday despite rising Middle East tensions and weakening economic sentiment data.

Energy and mining shares led gains, helping lift the benchmark Stoxx Europe 600 index by 0.94% to 580.73 points after early losses.

Germany’s DAX 40 rose 1.18% to 22,562.88 points, France’s CAC 40 gained 0.92% to 7,772.45, Italy’s FTSE MIB 30 added 1.02% to 43,823.24, and Britain’s FTSE 100 climbed 1.61% to 10,127.96, supported by commodity stocks.